Securities Commission accepts undertakings from Auckland firms

The Securities Commission has accepted enforceable undertakings from two Auckland-based property investment firms and their sole director, Cheryl Macaulay.

The enforceable undertakings relate to an offer made by Auckland Investment Properties, Commercial Investment Properties -- which promoted the offer, and Ms Macaulay.

Any future offers are also covered by the undertakings.

The commission found that offer documents distributed by Auckland Investment Properties during August and September did not comply with securities legislation.

The commission said in a statement the offers in the investment statement and the registered prospectus were inconsistent and were for different securities. The rate of return given in the investment statement and advertising was also misleading.

The commission cancelled the registration of the prospectus and stopped distribution of the investment statement and advertising of the offer.

The company agreed to refund all money raised by the offer.

The enforceable undertakings aim to ensure that any future offers comply with securities law, any future advertising is prepared by professional advisers, and a compliance plan is followed to ensure future compliance with the law.

- NZPA